JAKARTA (TheInsiderStories) – A telecommunication and network service provider in Indonesia, PT Telkom Indonesia Tbk (IDX: TLKM), and Netflix, Inc., (NASDAQ: NFLX), an internet entertainment service from United States, announced a video streaming services partnership. They expect with the partnership will enable future consumers to enjoy services created through IndiHome and PT Telekomunikasi Selular (Telkomsel).
The two parties also agreed to explore network cooperation that aims to provide the best digital entertainment experience for customers in Indonesia. Telkom’ director, Dian Rachmawan, said, video streaming services can dominate bandwidth consumption by up to 70 percent of total internet traffic and Telkom continuously increases network capacity to anticipate the increase in video streaming traffic.
While, Netflix’ VP, Tony Zameczkowski, stated, “Our partnership with Telkom will make it easier for consumers to subscribe to Netflix and enjoy high-quality video streaming on the Telkom network, which is the largest network in Indonesia.”
In this year, the state firm plans to spend around Rp35.9 trillion (US$2.47 billion) in this year to strengthen the network and infrastructure and digital segment. The capital expenditures amount was 25 percent of this year’ revenues target of Rp143.94 trillion. In 2021, the company will focus to develop cloud services platform services along with smart platform services.
Currently, the group has developed cloud services, FloU, and has 22 data centers spread across Indonesia, Singapore, and Hong Kong. In Singapore and Hong Kong, Telkom owns four data centers under Telekomunikasi Indonesia International Pte. Ltd.
Since 2019, the operator has develop data centers across the archipelago. For this program the operator allocated Rp1 trillion. The telecommunication and network provider currently owns and operates 11 data centers in Indonesia under its subsidiary PT Sigma Cipta Caraka.
Earlier, CEO of Telkom, Ririek Adriansyah, said would release a number of new platform to enter fifth generation (5G) network as part of the development of digitization program. Next, he said, the provider aimed to develop various digital platforms such as big data, internet of things, and other platforms.
Last year, the state-owned firm has spent Rp36.59 trillion or 27.0 percent of total revenue for business expansion. Beside build new base transceivers, the company joined with private tower operator, PT Protelindo, have acquired 3.100 towers of PT Indosat Ooredoo Tbk (IDX: ISAT) for Rp6.39 trillion.
The publicly listed firm also injected more capital to its venture capital armed, PT MDI Ventures of $500 million to widens the digital business. The telco and network provider currently owned and operated 11 data centers in Indonesia under its subsidiary TelkomSigma.
In Singapore and Hong Kong, the operator owned four data centers under Telekomunikasi Indonesia International Pte. Ltd. The construction of the new data center its expecting starting this year and will be operated by Telkomsigma.
The unit, Telkomsel also have signed a memorandum of understanding with Chinese Huawei Technologies Co., Ltd., to accelerate development of Digital Indonesia in Barcelona, Spain. It said, both parties will cooperate to accelerate ecosystem and infrastructure development of fully connected digital in Indonesia.
As a group, Telkom managed six businesses portfolios such as mobile, fixed line, wholesale & international, network infrastructure, enterprise digital, and consumer digital. The Government of Indonesia owned 52.09 percent Telkom shares while the remaining 47.91 percent shares belong to public. The shares are traded on the Indonesian Stock Exchange and on the New York Stock Exchange, with code TLM.
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